Marriott International is making a bold move to grow its lifestyle and select-service offerings with the announcement that it will acquire innovative hotel brand citizenM for $355 million.
The deal, unveiled today, positions Marriott to further tap into the booming market of tech-savvy, design-focused travelers and significantly boosts its global presence, adding 36 hotels and 8,544 rooms to the Marriott portfolio of hotels. The brand also has three new hotels under construction which will add more than 600 additional rooms when they open in mid-2026.
citizenM, which was founded in 2008, caters towards younger, value-conscious travelers with smaller rooms and large common spaces for guests. Based on everything I’ve seen, the brand is similar to Marriott’s Moxy brand.
While the company doesn’t have many properties, citizenM hotels can be found in large cities around the world, like New York, Rome, London, and Paris. Anthony Capuano, President and CEO of Marriott International, had this to say about the acquisition:
“As we continue to drive best-in-class experiences for travelers, today’s announcement builds upon Marriott’s commitment to enhance options for guests and Marriott Bonvoy members. We are thrilled to add citizenM as a unique, differentiated offering to our select-service brand portfolio as we continue to strengthen Marriott’s foothold in this valuable market segment around the world. Marriott has a proven track record of growing acquired brands significantly by leveraging our global development ecosystem, the benefits of our industry-leading affiliation cost structure, and the power of our award-winning Marriott Bonvoy loyalty platform.”
Once the deal closes, pending regulatory approvals, Marriott plans to integrate citizenM into its system under new long-term franchise agreements. The transaction includes potential earn-out payments up to $110 million based on future growth milestones, but Marriott expects stabilized fees from the current citizenM portfolio to hit around $30 million annually.
citizenM leadership is also excited about the acquisition as they will continue to own the real estate and operate the hotels. Lennert de Jong, CEO of citizenM, said this:
“I am excited about citizenM’s future with Marriott International. citizenM was created for frequent travelers, and Marriott’s distribution capabilities will allow us to welcome new modern guests. With the strength of Marriott’s development engine, we look forward to the prospect of many additional citizenM properties in new destinations around the world. We will continue to own our real estate and operate all our hotels. This relationship will allow us to work together to maximize returns.”
Personally, I haven’t ever stayed at a citizenM hotel and, now that I typically travel with my wife and son, I’m not sure when I’ll have the chance to visit one of their properties. The brand seems cool and young, but appears to have a lot of overlap with the Moxy brand. At some point one has to wonder if Marriott International has too many brands.
Summary
Marriott International is acquiring citizenM hotels for $355 million. The acquisition is expected to close at some point in 2025, with the 36 citizenM properties joining the Marriott Bonvoy loyalty program.
(Images courtesy Marriott International)